AMC Entertainment’s Prospects Bright Despite Slow Film Releases, Says Analyst

• Barrington Research analyst James C. Goss has reiterated the Market Perform rating on the shares of AMC Entertainment Holdings Inc (NYSE: AMC).

• AMC reported strong Q3 earnings, above Street estimates. The softer film slate in the second half of Q3 offset a strong start, which featured carryover product from Q2, such as Top Gun: Maverick, as well as the July release of Minions: The Rise of Gru, and Thor: Love and Thunder.

• Also Read: AMC Q3 Earnings Highlights: Revenue And EPS Beat, Company Sells 14.9 Million APE Shares, Q4 Blockbuster Slate

• There is a robust slate of blockbusters, though the overall pace of releases appears to still be building back to a more normalized level, said the analyst.

• Goss said AMC is the largest operator of Imax Corp (NYSE: IMAX) IMAX and Dolby Cinema screens.

• The company also has its own PLF format, AMC Prime. With a blockbuster-heavy slate, PLF formats have done well in attracting consumers for a premium experience at a premium price.

• He cited AMC has made efforts to grow the theatrical business and extend beyond traditional operations, including home delivery of concessions and retail sales of AMC-branded microwave popcorn. A branded credit card is targeted for the Q1 launch.

• AMC is also seeking to leverage its circuit footprint with its recent Zoom Video Communications, Inc.  (NASDAQ: ZM) Zoom partnership to expand its meetings business with a function it feels would be of value to decentralized workforces.

• Related: How To Trade AMC Entertainment Stock Before And After Q3 Earnings

• Price Action: AMC shares are trading higher by 12.89% at $6.92 on the last check Friday.

• Photo Via Company

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